It also nearly doubled its number of seats in the Chamber of Deputies: a victory for Mexico City's PRD Mayor,
Andres Lopez Obrador.

Mr Obrador is one of the most popular politicians in Mexico and is being touted as the country's next president in 2006.

After results were announced both President Fox and PRI leaders called for coalition building to surmount the problems of
Mexico, a country where half of the 100 million inhabitants live in poverty.

"Now is the time to work together. We must redouble our efforts to confront successfully citizens' demands," President Fox
said.
"This is a mandate for dialogue, restraint and building agreements. If the citizens didn't vote for a majority, we'll have
to build one through co-operation with the political forces and the government. That is the mandate we have received today."

Presidential referendum

The Sunday election - the first since Mr Fox took power - was seen as a referendum on his presidency, halfway through his
six-year term.

His unfulfilled campaign promises include the creation of one million jobs a year, making the economy grow 7%, and
reducing poverty.

The president's term has also been blighted by the country's decade-old guerrilla problem in the southern state of Chiapas.

President Fox maintains popularity

Villagers armed with machetes in Chiapas caused 21 of 36 polling stations to be shut down
during voting.

But Mr Fox remains popular, largely for changes he has decreed to fight drugs and corruption, and for opening government
intelligence files on the "dirty war" waged against accused leftists during the 1970s and 1980s.

He also extradited former Argentine general, Ricardo Miguel Cavallo, to Spain where he is charged with genocide and terrorism.

President Fox is attempting to push through economic reforms, like opening up the oil industry to private investment and
overhauling the taxation system.

Despite losing its presidency in 2000 after enjoying single party rule for 71-years, the PRI maintained control of the
Chamber of Deputies, and with it, the ability to thwart most of President Fox's sweeping reformist agenda.

As such, these and future reforms introduced by President Fox are now more likely than ever to remain on hold.